Worcester Chapter 11 Bankruptcy Lawyer
What Is Chapter 11 Bankruptcy?
Filing for Chapter 11 bankruptcy is generally an action taken by a business that has too much financial obligation or debt. Anyone, including individuals and couples, can actually file for bankruptcy under this Chapter, but the most common scenario involves corporations, limited liability companies, and partnerships.
Chapter 11 is known as “reorganization” bankruptcy because it is meant to give the company an extended time to restructure its affairs, assets, and debts while still operating. Chapter 11 allows your company to keep its assets. If you believe it is in your best interests to file for Chapter 11, you will need the guidance and service of a reliable Chapter 11 lawyer like Attorney Troy Morrison.
As a Worcester Chapter 11 bankruptcy attorney, I have successfully handled thousands of cases for clients throughout the state. Because I have primarily focused my practice on bankruptcy, I have the advantage of 20+ years of experience.
How Chapter 11 Bankruptcy Works
Chapter 11 is the most expensive, complicated, and often the lengthiest of all forms of bankruptcy. The duration of the action may take years. The court may appoint a bankruptcy trustee, but that is not usually done except in cases of gross mismanagement or fraud.
After filing, an automatic stay is implemented which prohibits creditors from demanding payment. The business generally keeps running while it is given the first opportunity to create a reorganization plan within a given time period.
What Does a Chapter 11 Bankruptcy Plan Consist Of?
The plan must demonstrate how the company will pay back its creditors during the time frame of the proceedings. Generally, Chapter 11 plans have a three- to five-year period in which creditors are paid. These plans are a vital key to the entire process; they must be feasible.
Plans are then submitted to the court and must be accepted by both the court and relevant creditors for approval. If the company cannot come up with an acceptable plan, the creditors may submit a proposed plan to the court.
Creditors can include:
- Those whose credit has been backed by collateral
- Unsecured creditors (lacking collateral)
- Equity security holders, such as shareholders or a partner
Contact an Experienced Worcester Chapter 11 Bankruptcy Lawyer
Due to the complexity and extended timeframe of Chapter 11, it is in your best interest to retain a skilled and accomplished attorney.
I will work vigorously to meet your debt relief objectives so that your business can move forward into the future with a fresh start.
"His wealth of experience certainly paid off as the process could not have gone any better than it did. Troy's quick responses to my questions were very much appreciated along the way. I cannot recommend Troy high enough."JL
Person at my side through entire process.Daniel G.
Easy to talk ... helped me feel comfortable about the BK processJanet Sweeney